NASDAQ:CROX, an undervalued stock with good fundamentals.

Last update: Mar 15, 2024

CROCS INC (NASDAQ:CROX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:CROX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

What does the Valuation looks like for NASDAQ:CROX

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:CROX has received a 7 out of 10:

With a Price/Earnings ratio of 10.47, the valuation of CROX can be described as very reasonable.
CROX's Price/Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 92.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CROX to the average of the S&P500 Index (25.77), we can say CROX is valued rather cheaply.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent valuation of CROX.
Based on the Price/Forward Earnings ratio, CROX is valued cheaply inside the industry as 94.00% of the companies are valued more expensively.
CROX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.11, which is the current average of the S&P500 Index.
CROX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CROX is cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CROX indicates a somewhat cheap valuation: CROX is cheaper than 70.00% of the companies listed in the same industry.
The excellent profitability rating of CROX may justify a higher PE ratio.

Understanding NASDAQ:CROX's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 9 out of 10:

The Return On Assets of CROX (17.07%) is better than 98.00% of its industry peers.
With an excellent Return On Equity value of 54.51%, CROX belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.96%, CROX belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
CROX had an Average Return On Invested Capital over the past 3 years of 30.07%. This is significantly above the industry average of 10.11%.
The last Return On Invested Capital (21.96%) for CROX is well below the 3 year average (30.07%), which needs to be investigated, but indicates that CROX had better years and this may not be a problem.
The Profit Margin of CROX (20.00%) is better than 100.00% of its industry peers.
The Operating Margin of CROX (26.40%) is better than 100.00% of its industry peers.
CROX's Operating Margin has improved in the last couple of years.
CROX has a Gross Margin of 55.77%. This is in the better half of the industry: CROX outperforms 74.00% of its industry peers.
CROX's Gross Margin has improved in the last couple of years.

Understanding NASDAQ:CROX's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 6 out of 10:

CROX has an Altman-Z score of 3.87. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
CROX's Altman-Z score of 3.87 is fine compared to the rest of the industry. CROX outperforms 66.00% of its industry peers.
The Debt to FCF ratio of CROX is 2.04, which is a good value as it means it would take CROX, 2.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CROX (2.04) is better than 62.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CROX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Growth Analysis for NASDAQ:CROX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CROX was assigned a score of 6 for growth:

CROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.27%, which is quite good.
CROX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.01% yearly.
Looking at the last year, CROX shows a quite strong growth in Revenue. The Revenue has grown by 11.46% in the last year.
Measured over the past years, CROX shows a very strong growth in Revenue. The Revenue has been growing by 29.49% on average per year.
Based on estimates for the next years, CROX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.71% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of CROX contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.